Official figures - 4 million children could lose out if benefits are uprated with wages

• Low-income families face 21% price rise 2023/24

DWP figures out today show 4 million children are in households on universal credit facing big income cuts if benefits are not uprated with inflation in Thursday’s Autumn Statement. Twenty nine per cent (1.15m) of these children are aged four or younger.

Child Poverty Action Group (CPAG) says Government must use the Statement to stop more children from being pulled into poverty by uprating benefits with inflation – as promised by Rishi Sunak when he was Chancellor.

New analysis from CPAG finds that while prices will be 17% higher for all households in 2023/24 compared to 2021/22, low-income households will see a 21% rise in prices because they must spend a much higher proportion of their income on necessities like energy and food which have risen most sharply. 

Working couples on universal credit with two children would be £752 worse off in 2023/24 if benefits rise with wages (5.4%) rather than inflation (10.2%). Working lone parents with two children would be £654 worse off.

Chief Executive of Child Poverty Action Group Alison Garnham said:

"Children are going hungry because family budgets are at snapping point. This problem has been long in the making and in the current crisis another real-terms cut is indefensible. The Prime Minister has said he will protect the most vulnerable – as a minimum that means uprating benefits with inflation so that children have enough food and warmth this winter – but longer term more will be needed. Trading children’s health for efficiency savings cannot be an option."

A new CPAG Briefing ahead of the Autumn Statement calls on Government to make a range of reforms to reduce child poverty – including introducing comprehensive support with energy costs for low-income families, increasing child benefit, expanding free school meals eligibility, abolishing the two-child limit in universal credit and tax credits and removing the benefit cap.

Note to editors:

CPAG’s Briefing is here.

Today’s DWP statistics apply to England, Scotland and Wales are here.

CPAG media contact: Jane Ahrends 07816 909302.